Sony has withdrawn its mobile business from certain regions worldwide to focus on Hong Kong, Taiwan, Japan and Europe. According to a slide shown during the recent corporate strategy meeting, Southeast Asia, South Korea and Australia are among the non-focused and defocused regions.
In March of this year, the company ceased operations at its Beijing plant. In addition, Sony expects to reduce operating expenses by 50% and total costs by 57% for the full year 2020.
This happened after Sony integrated all of the consumer electronics and professional solutions businesses into a segment called Electronics Products and Solutions (EP & S) for TV, Camera, Audio and Mobile in FY 2018 (FY 2018) ended March 31, 2019. Revenue for the Mobile Communications segment decreased from $ 6.61 billion to $ 4.55 billion in fiscal 2018, compared to an operating loss of approximately $ 89 million in the same period. Sony forecasts a 3% decline in EP & S revenue to $ 74 million for the 2019 fiscal year, particularly in mobile smartphone sales, as well as facilitating and revitalizing the human capital movement within companies. The company also encourages new companies using its technology and aims to develop products that connect developers and users. Sony will be launching its latest model Xperia 1 over the next few days.
According to Reuters, CEO Kenichiro Yoshida, smartphones for Sony are a hardware entertainment and component that is critical to the sustainability of its hardware brand. He added that smartphones have become the first point of contact for the younger generation that no longer watches TV. Marketing asked Sony for a comment.
Last year, Sony Pictures commissioned around 5% of its worldwide marketing and sales staff to lay off, affecting approximately 25 jobs out of 550 employees. The cut will affect research and strategy, public relations, media, operations, and consumer protection and distribution positions, Bloomberg News said.